Research Study on Risks faced by Walmart - GRM Institute

Research Study on Risks faced by Walmart

Risks faced by Walmart

By  Srijani Bhattacharyya and Arul Dass (PGDRM Batch July’20-21)

 

 

Introduction
  • It is an American multinational retail corporation that operates a chain of hypermarkets, department stores, and grocery stores from the US, headquartered in Bentonville.​
  • Founded by Sam Walton in Arkansas in the year 1962​
  • As of April 30, 2021, Walmart has 10,526 stores and clubs in 24 countries, operating under 48 different names and operates in India as Flipkart.​
  • It is the world’s largest company by revenue, with $548.743 billion.​
  • Doug McMillion is the current CEO of Walmart.

 

Business Model

 

Structure of the Walmart Business Model

Walmart U.S.

  • It is the largest segment of the organization. That manages all the stores in the 50 states of the U.S., Washington D.C., and Puerto Rico. ​
  • This segment controls different aspects of the daily necessities of an individual.​
  • The business model of Walmart offers money orders, prepaid cards, wire transfers, and bill payments. ​
  • They provide physical access to the customers in the form of three primary store formats – supercenters, discount stores, and other small store formats.​

Walmart International

  • This part of the company includes 27 countries.​
  • The physical access is provided to the customers through the 156 distribution facilities.​
  • The physical stores support digital access with facilities such as “Click & Collect” (U.K.) and home delivery in Mexico.​

Sam’s Club

  • This segment operates in 44 states in the U.S. and Puerto Rico. ​
  • It takes care of membership-only warehouse clubs and provides a subscription service to individual customers as well as business owners.​
  • Focuses on Cross-docking.​

 

 

Strategies that led to the success of Walmart

  •  Walmart has two main strategies popularly known as EDLC and EDLP- EDLC- everyday Low Cost & EDLP- Everyday Low Price.​

 EDLP : Items priced at a low price every day so Walmart customers trust that its prices will not change under frequent promotional activity;​

EDLC : Effort to control expenses so that savings can be passed along to customers.​

  •  Rollbacks: Pass cost savings on to the customer by lowering prices on selected goods;​
  •  Online Grocery: Customer places grocery order online and has it delivered to home or picks it up at one of Walmart participating stores or remote locations; and​
  •  Money-Back Guarantee: Ensure the quality and freshness of the fruits and vegetables in Walmart stores by offering customers a 100 percent money-back guarantee if they are not satisfied.

 

Read the full research study here: Research study on Risks faced by Walmart

 

Disclaimer

This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or its students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.

 

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